Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Battered Resolution defiant: 'annuity reform will benefit us'

Battered Resolution defiant: 'annuity reform will benefit us'

Resolution made a defiant stance this morning, telling the stock market that it believes the Budget proposals to scrap compulsory annuities will actually strengthen its business.

Insurers sold off sharply yesterday following the chancellor’s statement with Resolution’s share price diving by 15%, wiping £800 million off the firm’s value.

However, it said that while there is a ‘negative implication’ for new business flow in the individual annuity market, it believes annuities will continue to be ‘an important product for those who value the guaranteed income throughout increasingly long retirement periods.’

‘Overall we see the proposals as a positive for the retirement savings market. The increased flexibility for savers means the attractiveness of placing additional contributions into a pension has now increased,’ the group said,

‘As the number two player in workplace defined contribution (DC) pensions with around 2 million DC pension customers overall (estimated to hold 1 in seven policies in the market), and with positive operational leverage in our corporate benefits business, Friends Life is well placed to benefit from these changes.’

Resolution, led by chief executive Andy Briggs (pictured), added that it is already working on expanding its range of retirement propositions.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Play Baillie Gifford's Snell bullish on India's prospects following election

Baillie Gifford's Snell bullish on India's prospects following election

Citywire AA-rated manager is seeing good overall growth for the Asia reason but is wary of varying valuations.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter